The Euro bounced from the support zone mentioned in our previous report, which stands between 1.0850 and 1.0810 levels and rallied to reach the hourly resistance zone.
As of today, we believe that traders should focus on 1.0965/75 levels, from where we expect bears to appear again. If the pair succeed to close above this zone, then the single currency confirm a bullish reversal in the near-term and can re-test 1.1070 peak in the next days.
Otherwise, bearish pressure may remain intact and prices are likely to reverse yesterday’s gains. Looking at the hourly chart, 1.0897-1.0880 levels may give the Euro another push if prices retrace lower. In the meantime, a breach of this zone will cancel the positive signals given yesterday.
Finally, the focus should be on 1.0965/75 level in the upside as it represents the hourly resistance zone and only a break above it will confirm a bullish reversal in the short-term.
The British pound rallied as expected after bulls managed to overtake 1.4040 peak. Prices jumped to reach a major resistance level in the hourly chart, which stands at 1.4190 level that coincide with the 61.8% Fibonacci retracement of the recent drop seen from 1.4400 high.
Consequently, we expect strong sellers to appear and a retracement lower is likely to happen during the next hours. Meanwhile, the short-term outlook remains bullish as far as prices keep trading above 1.4030 low. In addition, if cable turns lower in the next hours, we believe that 1.4120-1.4095 zone should see some demand.
Actually, our view remains positive in the short-term and only a break below 1.4030 level will put the pair under pressure. While a daily close above 1.4190 should clear the way for as high as 1.4250
USD/CAD keep trading in the same range, supported by 1.3370/80 in the downside and capped by 1.3500 psychological barrier in the upside.
Consequently, we maintain our negative view as far as 1.35 peak is in place and we will wait for a break of this level in the coming hours to confirm a bullish reversal in the short-term.
In the flipside, a break under yesterday’s low will trigger another sell-off towards 1.3300 major support, followed by 1.3270 in extension.
The Australian Dollar remains by far the strongest currency for this week.
Looking at the daily chart, the trend has changed to bullish after prices succeeded to overtake 0.7250 resistance level. By now, we expect prices to continue higher towards 0.7390 level. Traders, have to focus on the weekly close due to the importance of this resistance level. If the pair ends the week above 0.7400 psychological barrier, then we believe that all conditions will be calling for a big rally in the next days.
In the flipside, as far as 0.7200 low is in place our view is likely to remain unchanged and the upside pressure will persist.
The pair traded in a choppy range yesterday and prices turned down from 114.50 resistance level as mentioned in yesterday’s technical report.
The pair fell to as low as 113.20 level, which coincide with a former resistance level (turned support) before to bounce back again.
As of now, the trend remains bullish in the hourly chart and all eyes are on 114.90 peak, which represents a major resistance in the daily chart and the neckline of the double bottom pattern seen from 111.00 low.
However, we need to wait for a break above 114.50 level to confirm another leg higher in this pair. Otherwise, we can see a deeper correction lower before the bullish trend to resume.
Finally, we prefer to wait for either a break of 114.50 in the upside or 113.20 in the upside before to forecast the next move in this pair.
Yesterday, Gold managed to break outside of the recent range seen in the hourly chart. Moreover, we have seen a break above February high, which were at 1264$ per ounce.
The close was very significant and by now, we believe that the yellow metal has cleared the path for another extension higher in the direction of 1283 level followed by 1300 psychological resistance.
In addition, Gold broke above the bearish trend line drawn from 1305 peak, reinforcing the bullish outlook.
Consequently, we believe that another rally is likely to happen in the coming hours and we will maintain our positive view in the near-term as far as prices keep trading above 1250 support zone.
The New Zealand has begun to show some signs of recovery in the recent days.
In the daily chart, despite the fact that the pair broke below 0.6430 support, prices did not manage to close below this level and bounced back strongly, which kept us skeptical about the health of the med-term bearish trend.
Moreover, Kiwi rallied to as high as 0.6750 level before to drop to as low as 0.6550, which coincide with a former resistance seen on January. The pair pulled-back and turned higher, which is reinforcing the probability of another leg to the upside in the coming days.
In the near-term, the pair was stuck between a 200 pips range between 0.6560 in the downside and 0.6750 in the upside. Meanwhile, and looking at momentum indicators, we believe that prices are set for a bullish breakout in the next days, especially if the pair keep trading above 0.6560/40 support zone.
By now, we need to wait for a weekly close above 0.6750 to confirm this possible breakout, otherwise the neutrality may remain present.
In the flipside, a daily close below 0.6560 support will bring the bearishness back and cancel this positive view.
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